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Inflation, interest rates continue to impact consumers, dealers

Canadian Auto Dealer

Pressure from inflation and interest rates continue to impact consumers and dealers through increasing vehicle and financing costs, along with higher fixed and compensation costs, respectively. On average, banks are lending 50% of goodwill values on most dealership buy-sell deals, requiring more cash upfront for transactions.

Banking 52
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Packed house for biggest CADEX event ever

Canadian Auto Dealer

OEMs get to set a deal, contract directly with the customer, but they also have to take the commercial risk from the dealers,” said Tongue. By the time the transaction is done, and the vehicle is gone and it’s detected, then the bank pulls their financing and the dealer is out the funds for the vehicle — and the vehicle.

Retail 98